Tag Archives: Hiring

Hospitality Industry Employment Risks: Hotel Management And Owners Must Have Firm And Comprehensive Policies For Hiring And Classifying New Employees

Hiring

Background checks are routine now, but one size does not fit all, explained Paul Wagner, shareholder of Ithaca, New York-based Stoke Roberts & Wagner. Know the different rules for each jurisdiction.

  • Beware of process and policy around background checks, where decisions might create discrimination issues related to U.S. Title VIII, or the Fair Housing Act, said David Sherwyn, professor at the Cornell University School, of Hotel Administration.
  • Ensure new hires don’t have restrictive covenants from prior employers, said Gregg Gilman, partner with New York-based law firm Davis & Gilbert LLP. Be sure to tell new hires explicitly, “We don’t’ want your former employers’ trade secrets.” “We’re seeing more and more of this kind of litigation,” Gilman said, adding it’s very expensive and disruptive to defend.

Classifications

 The U.S. Department of Labor’s definition of an independent contractor is not the only factor used in determining who is an employee. The courts use a more expansive test when determining who can file Title VII claims, which prohibits employment discrimination based on race, color, religion, sex and national origin, Sherwyn said. “The issue here is that people sometimes relax a little bit with contractors,” he said. Even if someone is not directly employed by your organization (i.e. a contractor) that person can still bring litigation against you.

  •  In light of increased enforcement by the DOL, companies should have protocols in place before classifying independent contractors, Gilman said. Have a written agreement stating the independent contractor is just that. And avoid the “perma-lancer,” or those permanent freelancers, who are more likely to be classified as regular employees, he said.
  • Self audit often, said Ilene Berman, a partner with Atlanta-based Taylor English Duma LLP. Annually review any exempt employee with “assistant” in the name as well as sous chefs and sales managers. Those are the positions most frequently targeted by plaintiff attorneys.
  • Check local and state laws because exempt in other states does not mean exempt in California, said Nancy Yaffe, partner with Los Angeles-based Fox Rothschild LLP. California is a different beast, she added. You have to analyze employee classifications on a continuous basis.

For more:  http://www.hotelnewsnow.com/Articles.aspx/7647/26-legal-tips-for-hotel-HR-professionals

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Filed under Labor Issues, Management And Ownership, Risk Management, Training

Hospitality Industry Employee Risks: "Employment Practices Liability Insurance" Policies Can Protect Hotel Owners From Costly Litigation When Using Social Media In Hiring Process

For a price comparatively nominal to the cost of litigation, employers can purchase an employment-practices liability insurance policy (EPLI). An EPLI policy provides protection for the employer from the economic and noneconomic losses resulting from employment-related claims, including but not limited to claims of wrongful termination, discrimination, harassment or retaliation.

  In addition to an employer’s risk-management portfolio for social media, an employer’s overall risk management should include an EPLI policy to protect them from the costly litigation associated with labor and employment.

Employers need to have a solid social-media policy in place. This policy should:

  • Outline what constitutes inappropriate use of social media, from personal use during work hours to the type of content posted, including defamatory language about the company.
  • Address the penalties for disclosure of trade secrets on public pages, in a language and context that can be understood clearly.
  • Address disciplinary action and termination procedures for violation of social-media use in its various forms.

Many hiring professionals and employers’ first stop during the hiring process is social-media outlets to screen applicants. They turn to LinkedIn or Facebook to learn more about an applicant’s education, their friends or even their social behavior.

Sometimes, a candidate is rejected based on content found on the applicant’s social-media pages, which could include inappropriate photos or comments, references to alcohol and substance abuse, discriminatory comments, slanderous statements and/or the sharing of confidential information regarding their previous employer, proof of poor communication skills and exaggeration of their qualifications.

While the above reasons are legitimate cause for concern, and employers advantageously have social media at their disposal to prevent negligent hiring, a business can be at risk for discrimination if accessing social-media sites that contain protected class information not privileged in the normal course of the hiring process.

To mitigate this risk, employers should use outside third parties in their hiring process, including background-verification companies and/or recruiters who document content acquired on social-media sites in the candidate-selection process.

For more:  http://www.propertycasualty360.com/2011/12/01/managing-social-media-risks-a-critical-task-for-20?t=workers-compensation

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Filed under Claims, Employment Practices Liability, Insurance, Labor Issues, Management And Ownership, Risk Management